The Christmas season puts internet merchants to the test. You must be prepared to manage the massive increase in order volume. At all times, inventories must be piled. It is critical to provide a positive consumer experience. But it isn't all. As the number of orders increases, so grows the number of returns.
The causes for returns are numerous, ranging from incorrect products to broken goods to sizing difficulties. In fact, the total value of e-commerce returns reached $37 billion in 2018. This figure is only growing with each passing year.
However, dealing with refunds is anything but simple. Every return order should be executed on promptly, whether it is an exchange or a reimbursement for the consumer, while ensuring that the most value is derived from these products.
So, what are some of the things to bear in mind while dealing with e-commerce returns?
Have a return policy that is beneficial to customers.
Customers today make well-informed purchasing judgments. Amongst the factors they consider before making a purchase, a brand’s return policy sits at the very top.
It is, in fact, something that tells the customer whether or not they can trust your brand. So, how do you create a return policy that doesn’t put away customers? Here’s a simple hack to follow: make it easy to find, read, and understand.
Make your return policy visible on your website so that customers can quickly find it. You can accomplish the following:
Display the return policy on all product listing pages.
Create a comprehensive returns page.
On order confirmation and status update emails, include links to your return policy.
Every product listing on Zappos, for example, includes a link to its returns page. As much as you may make your returns policy stand out, it's as crucial to design one that properly explains expectations. Many online businesses miss the plot here, creating policies that are either ambiguous or do not provide enough information to the user. Check that your insurance coverage covers the following:
Application deadline for tax returns
Conditions that must be satisfied in order for a return to be legitimate.
When can the consumer expect to hear from you?
When will the reimbursement be issued?
In the event of a product exchange, the estimated delivery time
Make returns simple.
Do your consumers find it simple to apply for returns? According to UPS, just 53% of customers are happy with the simplicity of returning to a site where they previously shopped.
Frequently, the consumer is requested to fill out superfluous documents, courier the things themselves, and, in some circumstances, even pay for shipment.
All of this reduces the customer's probability of purchasing from you again. So, how can you streamline the return process? Here are a few suggestions:
Allow clients to request a return using your website/mobile app. Perform load testing before the Christmas season begins to verify that your portal can manage the increase in requests.
Accept responsibility for collecting the merchandise from the consumer. If you're short on labour, consider partnering with a third-party provider for door-to-door pickup.
Request a convenient time to collect returns from the consumer. It is critical for working professionals to plan a pickup during non-office hours.
Before returning things to the warehouse, they must be properly wrapped. During pickup, do not request packing from the consumer.
Instead, arm your local teams to complete this task.
Keep the consumer informed of the progress of return orders (more on this later).
The purpose is to reduce the number of steps required by a consumer to start a return order.
Put in the necessary automations.
Automation is becoming quite ubiquitous in logistics. They contribute significantly to the speeding up of processes and the reduction of grunt work.
The good news is that they can also expedite your return procedure. Regardless of the exceptions that arise while managing returns, having the correct automations in place may be a game changer for your warehouse workers.
Real-time inventory management: Updating inventory levels in real-time assists your warehouse employees in deciding where to put returned products, whether or not an exchange can be handled, and communicating proactively with vendors regarding stock replenishment (for instance, when a particular product is seeing high return rates). LED screens with a real-time counter might be installed in warehouses. Wearables that measure stock levels throughout warehouses might also be offered.
Emails with status updates: I'm confident you already keep clients informed about returns. Most online businesses offer updates after processing returns and mailing the replacement product/issuing a refund. But how can you convey delays? Remember that delays might occur for causes beyond your control. It is always advisable to alert customers. You may accomplish this by establishing a trigger: when a return order is not fulfilled within 'X' number of days. Send an email/SMS to the customer advising them of the delay. Create and trigger versions of the status update email based on the various causes of the delay.
Smooth return movement: Returned products must be routed based on their condition. Damaged ones must be repaired. Some must be returned to the merchant. Others will be discarded. Sortation conveyor systems are an excellent way to speed up the sorting and transfer of returns. Perform a load test before the Christmas season if you already have these in place. Furthermore, Automated Guided Vehicles can assist in transporting items swiftly across warehouse and distribution centre floors.
To summarise, controlling returns is all about having the proper people and systems in place. Make sure your staff is educated to manage the number of items coming in, and develop methods to assist you save time getting these things out of the return chain. Let us know if you have any tips or strategies for dealing with returns in the comments below.
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